12 Best Fast Food Stocks to Buy Now

3. CAVA Group, Inc. (NYSE:CAVA)

Number of Hedge Fund Holders: 47

CAVA Group, Inc. (NYSE:CAVA) is a brand of fast-casual restaurants in the United States that specializes in Mediterranean-style food. Its unit economics and solid growth in same-store sales are similar to those of Chipotle at a comparable size. According to ClearBridge Growth Strategy, the company is still in the early phases of realizing its potential for unit development. As brand awareness develops and new locations boost efficiency, there is potential for ongoing same-store sales growth. The stock grew by more than 29% in the past year, making it one of the Best Food Stocks.

CAVA Group, Inc. (NYSE:CAVA)’s strong momentum is shown by its excellent 28% YoY revenue growth to $225.1 million, with same-restaurant sales at 21.2%. Although it was still better than the previous year, the EPS of $0.05 was below the $0.07 expert consensus. The company is reaffirming its commitment to growing its fast-casual Mediterranean concept by launching 15 new restaurants in Q4 and planning 62-66 more sites in 2025.

Key growth drivers include menu changes, such as steak, which have successfully drawn more consumers, as well as an updated reward program aimed at encouraging repeat visits and interaction. In the face of wider economic constraints, CAVA Group, Inc. (NYSE:CAVA)’s inexpensive cost continues to be a significant advantage, drawing in budget-conscious customers.